BNB coin has bucked the wider crypto market trend, rallying nearly 20% in the past week despite a general downturn.
However, on-chain and technical indicators now suggest that the rally may be losing steam, as traders turn cautious and begin booking profits from recent gains.
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BNB Faces Profit-Taking Wave
Readings from the BNB/USD daily chart confirm the shift in market sentiment around BNB. While its price has risen steadily over recent trading sessions, its Chaikin Money Flow (CMF) has plunged downward, forming a bearish divergence. At press time, this key momentum indicator stands at -0.02.
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The CMF indicator tracks money flow into and out of an asset. When it falls during a price rally, it forms a bearish divergence.
This indicates that despite BNB’s upward price movement, buying pressure is weakening, and if this trend continues, the coin could shed its recent gains.
Furthermore, BNB’s long/short ratio has steadied below one since October 6, highlighting the growing negative bias among futures traders. As of this writing, this is at 0.9354.
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The long/short ratio measures the proportion of traders holding long positions (bets that an asset’s price will rise) against those holding short positions.
When it returns a value above one, more traders expect upward momentum, reflecting a bullish trend in the derivatives market.
Conversely, a ratio below one, as with BNB, indicates that most participants are betting on further downside. A sustained increase in short positioning reflects expectations of a market correction, further adding to the coin’s selling pressure.
BNB Hangs by a Thread at $1,263
At press time, the altcoin trades near the support at $1,263. If bearish sentiment prevails, the support floor may crumble and BNB could retrace toward $1,100, erasing a portion of last week’s gains.
However, a rebound in buying activity could still keep the token above that key support level. In this scenario, BNB’s price could revisit its all-time high of $1,349.
